State, Korean biotech firm to set up JV

Girish KuberJul 18, 2005, 01.32AM IST

MUMBAI: Histostem, a South Korean life sciences major, is all set to enter into a JV with the Maharashtra government for setting up a Rs 86 crore cord-blood and stem cell bank and process centre near Mumbai.

Histostem Inc (Hoon Han, CEO) is a biotechnology company engaged in researching and developing stem cell lines for therapeutic purposes. At present the company is into cell therapy research, public cord blood bank for transplantation, family cord blood bank and human leukocyte antigen (HLA) assay. The company has also developed the technology of mixing cord blood for transplantation that can be available to adult patients. It is also one of the biggest cord blood banks having over 45,000 cord blood units.

Recently, the company officials met chief minister Vilasrao Deshmukh in the US. The state had also signed an MoU to open a JV through its arm the Maharashtra Industrial Development Corporation.

"We have expedited the process," a government official said. Earlier the company had signed an MoU with the Government of India to utilise umbilical blood to farm stem cells that are found plentifully in newly born babies' cords.

Stem cells are increasingly used for treating diseases like osteoporosis, diabetes, benign tumours, hepatic and renal failures and even find use in treating congenital disorders like autism.

India has the highest number of annual births world-wide and therefore has promise of the largest supply of cord blood in the world. Histostem earlier had proposed to set up a cord blood bank and facilities for extraction and cryo-storage of stem cells. "The DNA profile of Indians had a global character and therefore stem cells extracted from Indian cord blood would match genotypes of more races world wide than any other," the company had informed the government.

Considering the density of population and hospitals in the vicinity of Mumbai, it would only be appropriate for a venture such as Histostem to set up its facility in the environs of Mumbai, a MIDC official stated.